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OBJ/1002/EE/1 Proof of Evidence of Mrs Ellie Evans BA, MA, (Cantab)

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OBJ/1002/EE/1 Proof of Evidence of Mrs Ellie Evans BA, MA, (Cantab) OBJ/1002/EE/1 Proof of Evidence of Mrs Ellie Evans BA, MA, (Cantab) The Hoad family of Parsonage Farm, and the Trustees and Executors of the Noel de Quincey Estate and Mrs Emma Ainslie of Moat Farm A report by Volterra Partners, June 2021 Volterra 1 1 Experience 1.1 I am a senior partner at Volterra Partners, a specialist economic consultancy which focuses on the social and economic impacts of developments & infrastructure projects. I have been with Volterra for almost 20 years, during which time I have specialised in the social and economic impacts of developments and proposals, regeneration projects and transport schemes. I hold a BA in Economics from Cambridge University. 1.2 I have advised on many economic development and transport infrastructure projects, including studies relating to the economic case for Crossrail and HS2, major new train lines. These studies considered and quantified the value of these train lines in terms of their economic importance, through estimating jobs, GVA, taxation, revenues, business rate contributions and overall scope for growth. 1.3 I have recent experience providing evidence at an Inquiry in Maidstone for an industrial development at Waterside Park, focusing on the economic impact of the Proposed Development to Kent and the wider South East. I have also provided evidence at a planning committee in Tunbridge Wells on the economic impacts of a proposed leisure facility. I also prepared evidence for a planning inquiry into a hotel scheme in central London. 1.4 Outside of these projects, I have also led economic assessments of schemes focusing on leisure and tourism, including: hotels across a wide range of areas and categories (including Montcalm Royal London, London Peninsula and the recently permitted Cheval Blanc hotel in Mayfair), entertainment destinations (including Westfield Stratford City retail mall, the proposed London Resort theme park and the proposed MSG London Sphere arena), and second home resorts (in Dorset). These studies involved analysing tourism, spending and economic impacts associated with the proposals. 1.5 I am also experienced in building and reviewing models which forecast employment and assess their implications within local areas. For seven years I managed Volterra’s provision of long-term employment forecasting to GLA Economics, which involved forecasting long-term employment growth disaggregated across 33 London boroughs and 12 industrial sectors. 1.6 I have additionally assisted in the preparation of evidence for a number of significant planning inquiries including Birney Hill Farm (a proposed housing development in Northumberland), Royal London House (a hotel in central London), and Croydon Gateway Arena (a proposed arena-led scheme in south London). The Hoad family of Parsonage Farm, and the Trustees and Executors of the Noel de Quincey Volterra Estate and Mrs Emma Ainslie of Moat Farm| Rother Valley Railway Main Proof of Evidence 2 2 Introduction and Background Introduction to my Evidence 2.1 On behalf of my company, Volterra, I have carried out an analysis of Steer’s 2018 report (RVR/09) which assesses the potential economic benefits of the proposed Rother Valley Railway extension, to underpin the evidence presented here for the Inquiry into the Transport and Work Acts order application. My clients are the landowners whose land would be compulsorily acquired and whose businesses would be affected by the proposals. 2.2 This proof of evidence presents my assessment of the validity of the claims in the Steer report, which has implications for its use as justification for the scheme. Through this evidence I will assist the inspector in relation to my areas of expertise – namely economic impact, development and growth – and respond to issues arising in the context of the Steer report findings. 2.3 I explain why I believe that, although the extension will likely bring some economic benefits, these benefits have been overstated in the Steer report and that these issues should be considered when the inspector makes a recommendation on whether the application should be approved and compulsory purchase powers authorised. Case summary 2.4 Rother Valley Railway (RVR) is a proposed extension of the Kent and East Sussex (KESR) heritage railway. 2.5 The KESR currently runs from Tenterden to Bodiam and is usually accessible at any of the five stations – Tenterden, Rolvenden, Wittersham Road, Northiam and Bodiam. 2.6 In 2017, the railway had 88,400 passengers, 90% of which accessed the railway from Tenterden, and the majority of which arrived by car (as opposed to coach).1 2.7 The RVR would extend the heritage line from Bodiam to a new station in Robertsbridge called Robertsbridge Junction, which was built to serve as the Western terminus for the KESR. RVR expects that the connection will increase the catchment area of KESR given that Robertsbridge Junction is only a short walk to Robertsbridge station (the two stations are either side of the station car park) - a national rail station on the Southeastern line from London to Hastings via Tunbridge Wells - and the fact that Robertsbridge sits on the A21 road which also runs between London and Hastings. The railway is controlled by Rother Valley Railway Heritage Trust. It owns the operating company, Rother Valley Railway Ltd, which was set up to oversee the completion of the RVR project. 2.8 So far, certain portions of the RVR have been completed, with a small section extending the track westwards from Bodiam station, and a small section joining the track to the national rail at Robertsbridge which was completed in partnership with Network Rail. Still to complete, therefore, is the 3.4km ‘missing link’ as shown in the figure below. 1 Steer, 2018, Rother Valley Railway Economic Impacts Report: paragraph 2.25 states the ‘vast majority starting their journey at Tenterden’ and 4.8 states ‘The majority are understood to visit by car, although a significant minority arrive on organised coach trips.’ The Hoad family of Parsonage Farm, and the Trustees and Executors of the Noel de Quincey Volterra Estate and Mrs Emma Ainslie of Moat Farm| Rother Valley Railway Main Proof of Evidence 3 Figure 1: Rother Valley Railway ‘Missing Link’ Source: Steer, 2018. RVR/09 2.9 The 2014 Environmental Statement (ES) (RVR/25) concluded that there were some minor beneficial socio-economic effects identified but none which were considered significant in ES terms. In 2018, Steer were asked to estimate the economic impact of the proposed RVR connection. RVR’s updated Statement of Case (RVR/66) and RVR note to Office for Road and Rail (ORR) (RVR/75) cited Steer’s findings in their justification of the scheme. A number of letters of support also quote the Steer figures. The validity of the scale of economic benefits is therefore highly relevant as it underpins support for the scheme from others. The 2021 ES (RVR/70-01) stands by the conclusions of the 2014 ES (RVR/25) from a socio-economic perspective. The 2021 ES does however comment briefly on the findings of the Steer report, and concludes with broad support for the benefits presented from the central case. The investment case is not mentioned. 2.10 I have been asked to review the Steer report and assess the validity of its conclusions. Structure of this Evidence 2.11 In section 3, I summarise the current operations of the KESR including an introduction to the KESR, timetabling, pricing, staffing, and my understanding of its broad financial position given a review of its available accounts. 2.12 In section 4, I summarise heritage railway case studies, including those which I am aware have been extended to join a National Rail line, as well as some other local comparators/competitors. These provide me with a benchmark for the impacts of the proposed extension. The Hoad family of Parsonage Farm, and the Trustees and Executors of the Noel de Quincey Volterra Estate and Mrs Emma Ainslie of Moat Farm| Rother Valley Railway Main Proof of Evidence 4 2.13 In section 5, I present the main findings from the Steer report. Using my industry experience and learnings from the above discussed case studies, I analyse the validity of the crucial assumptions and therefore the findings in that report. This discussion is structured around my main concerns regarding the Steer report. 2.14 In section 6, I conclude on my view of the Steer report, and provide my professional opinion of the likely economic benefits of the proposed RVR extension given the evidence presented and my analysis as described. The Hoad family of Parsonage Farm, and the Trustees and Executors of the Noel de Quincey Volterra Estate and Mrs Emma Ainslie of Moat Farm| Rother Valley Railway Main Proof of Evidence 5 3 The Current Operations of the KESR Passengers 3.1 I have looked through the KESR accounts (I discuss the financial findings later in this section) which detail the passenger numbers for each year. These are summarised in the table below. This shows that on average over the past seven years, the railway attracted c. 86k passengers, and this figure has varied from 80k to 94k. The accounts split out the passengers who use the Pullman dining trains, which equate to c. 3.5%- 4.5% of total passengers (between c.3,050 and 3,600) each year. Table 1: 2020 KESR passenger numbers Avg** FY13 FY14 FY15* FY16 FY17 FY18 FY19 FY13-FY19 Passengers 94k 84k 79k 80k 88k 81k 87k 86k Source: KESR accounts FY13 to FY19 (OBJ/1002/EE/2-1 to OBJ/1002/EE/2-7). *FY15 is the 10 months to October 2015 (because the accounting year changed). **Avg FY13-FY19 therefore excludes FY15 3.2 The publicly reported figures available in the accounts do not differentiate in each year between regular passengers and users of the special services.
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